Starbucks China announced a strategic partnership with green technology leader Envision Group on July 18 to develop a comprehensive carbon reduction model across the coffee chain's supply network.

Executives from Starbucks China and Envision Group pose during the announcement of their carbon reduction partnership at the third China International Supply Chain Expo in Beijing, July 18, 2025. [Photo courtesy of Starbucks China]

The partnership, unveiled at the third China International Supply Chain Expo in Beijing, will use a digital carbon management platform to track emissions from Starbucks' direct and indirect suppliers over the next three years. The platform aims to measure carbon footprints across thousands of Starbucks China products and then develop customized decarbonization strategies for suppliers throughout the supply chain.

The collaboration expands an existing partnership between the companies focused on sustainable store operations. Starbucks China said the partnership reflects its long-term commitment to the Chinese market and shared development values.

"After 26 years of deep roots in China, sustainability has become integral to every Starbucks store and every cup of coffee," said Molly Liu, CEO of Starbucks China. "We look forward to collaborating in depth with Envision to move the supply chain behind our coffee toward sustainability together with Starbucks."

Liu said she hopes suppliers will apply decarbonization practices developed for Starbucks to broader operations, potentially driving green transformation across the food and beverage retail industry.

"Today's strategic partnership announcement represents our shared commitment to the planet's future," said Zhang Lei, Envision founder and chairman. "The warmth of coffee mirrors the warmth of technology. As a zero-carbon technology partner, Envision will help Starbucks build a greener, more sustainable supply chain to create a better world and more aromatic coffee."

The companies have already implemented sustainable technologies across more than 7,500 Starbucks stores in China. Starbucks stores nationwide use Envision's smart IoT operating system to track energy consumption in real time. The system adjusts to individual store operations and peak business hours to optimize energy efficiency and reduce carbon emissions.

At the Starbucks China Coffee Innovation Park in Kunshan, Jiangsu province, Envision installed a comprehensive zero-carbon energy system. The facility uses solar panels, energy storage technology, electric vehicle charging stations, and a digital energy management platform, combined with renewable electricity sourcing. The integrated systems aim to reduce energy consumption, lower operating costs and cut carbon emissions across the coffee innovation campus.

The booth of Starbucks China at the third China International Supply Chain Expo in Beijing, July 18, 2025. [Photo/China.org.cn]

Starbucks and Envision said the technology deployments at Starbucks facilities show how digital systems and green technology can transform supply chain operations, prompting the expanded partnership between the companies.

Fu Baozong, deputy director of the International Cooperation Center at the National Development and Reform Commission, said he was pleased to see Starbucks partnering with Envision to establish a benchmark for green development through their supply chain decarbonization model.

The partnership demonstrates the pivotal role of anchor enterprises in driving sustainable development, Fu said. He noted that under China's carbon neutrality goals, all industries are pursuing green and low-carbon transformation.

Suppliers account for about 70% of Starbucks' total carbon emissions, making upstream supply chain decarbonization a critical challenge. Starbucks said it is addressing supply chain emissions while optimizing its own operations to lead industry-wide low-carbon transformation.

Over the next three years, Starbucks and Envision will develop a supply chain carbon management platform for Starbucks China based on Envision's EnOS Ark Carbon Management System. The platform will expand to all direct suppliers and key indirect suppliers, measuring carbon footprints across thousands of Starbucks products to create customized decarbonization plans.

Starbucks will provide carbon emissions data across all operational areas for suppliers in food, dairy, logistics and packaging sectors, the company said.

In dairy operations, which represent Starbucks' largest emissions source, the company and Envision have developed a digital tool for sustainable dairy management in China. Pilot farms are implementing measures including renewable energy adoption, feed formula adjustments and precision feeding to manage carbon footprints and improve emission reduction strategies.

The two companies said they hope their partnership will influence industry-wide decarbonization practices. Using models from their green stores and innovation park, Starbucks and Envision will share expertise with supply chain partners, the companies said.